Communication from the «Biofuels. Ukraine – 2008” Conference participants to the Ukrainian state bodies
Kyiv, 4 April 2008
One of the possible ways to solve energy problems in Ukraine is to increase the volumes of alternative and renewable energy production and consumption. Currently, this great potential is used by 0.83% only. Ukraine has to make serious steps towards development of renewable energy sources, that will help to increase the level of its environmental and energy security and to provide agrarian and transport sectors with biofuels of own production, and in such way to decrease the dependence of national economy on import of oil products.
Nowadays Ukraine has solid economic background for biofuels production and distribution: spare land for growing grain and oil plants, scientific and human resources potential, increasing internal demand for liquid biofuels, enormous export opportunities. All these allows for rapid increase of production volumes.
The current status of the Ukrainian biofuels industry requires joint efforts to be undertaken by the State and the business for creating favourable investment conditions and formation of biofuels market of Ukraine. As a result of discussions related to development and usage of liquid biofuels, this Communication from the conference participants to the Ukrainian state bodies was elaborated containing recommendations for further development of biofuels industry.
Recommendations to the Verkhovna Rada of Ukraine:
To facilitate creation of biofuels market by harmonizing the Ukrainian legislation with the European one. With this purpose it is expedient to speed up the process of considering and adopting the draft Law of Ukraine “On Facilitating the Usage of Biofuels” envisaging provisions that would allow for:
- Creating a balanced system of regulatory and market instruments for production and usage of biofuels;
- Introducing the definition of terms «bioethanol» and «biodiesel» into the legal framework in accordance with the European legislative norms;
- Creating opportunities for investments into biofuels production, and ensuring production of biofuels by enterprises of all forms of property;
- Excluding bioethanol from excisable products, having introduced a special control procedure on its production and circulation;
- Introducing a legislative norm on establishing an obligatory use of a certain share of biofuels within the general consumption share;
- Establishing moratorium on excise tax of biofuels, i.e. fuels with 30 or more percent of bioethanol content (also as aň ETBE share) and diesel biofuel;
- Introducing compensation of banking lending rates of banks for domestic investors – Ukrainian residents for purchase of equipment and construction of bioethanol and biodiesel plants in Ukraine;
- Establishing limits on MTBE usage in petroleum production and prohibiting its usage in future.
Recommendations to the Cabinet of Ministers of Ukraine:
1. To determine the development strategy of Ukraine as a biofuels producer, consumer and exporter.
2. To take measures aiming at increase a share of alternative motor fuels produced from renewables in the energy balance at the level of the EU requirements.
3. To complete the State Energy Strategy to 2030, intensifying the role of alternative and renewable energy sources according to the world trends.
4. To create and adopt the State Programme on Development of Production and Usage of Liquid Motor Fuels “Motor Biofuels” by the end of 2008.
5. To introduce obligatory usage of biofuels in cities with population over 500 thousand inhabitants.
6. To coordinate the activities of the relevant ministries, departments, scientific institutions and enterprises in the sphere motor biofuels production through creation of an executive body in charge of development of biofuels production and consumption.
7. To ensure availability of normative and technical documents for promotion of motor biofuels at the Ukrainian market.
8. To ensure laboratory control over quality of motor biofuels produced and sold at the market.
9. To facilitate the extension of cultivated areas for energy crops up to 20%.
10. To facilitate creation of the Centre for scientific and technical support of development and production of new kinds of motor biofuels, technologies and equipment, as well as of normative and technical documentation at the National Academy of Sciences of Ukraine.
11. To create favourable conditions for attraction of foreign investments.
12. To facilitate creation and development of infrastructure for biofuels usage.
